The CEO of a popular pickleball apparel brand has been accused of committing a Ponzi scheme by begging 250 of his wealthy friends to invest millions but then refusing to pay them back.
Rodney “Rocket” Grubbs of Brookville, Indiana, launched Pickleball Rocks in 2009 to sell a line of apparel and equipment for the sport — and quickly began convincing other pickleball fans to invest in his company.
Described as ‘the ultimate ambassador of Pickleball’, he traveled the world playing in tournaments – and his company had a projected turnover of $1 million by 2022.
According to IndyStarhe convinced hundreds of people from the US, Canada and Portugal to invest and hand over millions to his startup when he needed the capital.
Rodney “Rocket” Grubbs of Brookville, Indiana, launched Pickleball Rocks in 2009 to sell a line of apparel and equipment for the sport – and quickly began convincing other pickleball fans to invest in his company
Described as ‘the ultimate ambassador of Pickleball’, he traveled the world playing in tournaments – and his company had a projected turnover of $1 million by 2022
But in January, the Indiana Secretary of State’s securities division issued a warrant for Grubb’s “alleged fraudulent investment scheme.” He now faces $9 million in judgments.
He also faces four different lawsuits, including one in which several investors have asked a federal judge to force Grubbs into Chapter 7 bankruptcy.
But in response, he said he is too poor to even afford a lawyer.
Grubbs claims his only qualifying assets are 11 rental properties valued at $800,000, as well as $150,000 worth of equipment and clothing from Pickleball Rocks.
The alleged fraudster told the judge in one of the $5 million investor lawsuits last year that he won’t have enough money to pay it out – especially if the other ‘250 outstanding lenders’ try to get money if he files for bankruptcy.
Teri Siewert, an investor from Florida, said, “He traveled around using his good reputation, as well as the reputations of others he surrounded himself with, to take advantage of good people.
‘None of them were stupid. They were doctors. They were lawyers. They were professors. One was a financial advisor. She feels really terrible. That’s how much confidence he had in the pickleball community.”
Oklahoma-based pickleball referee Ron Ponder invested $65,000 in Grubb’s pickleball venture.
The Indiana Secretary of State’s Securities Division has issued a cease and desist order for Grubb’s ‘alleged fraudulent investment scheme’ – and he now faces $9 million in judgments
The alleged fraudster told the judge in one of the $5 million investor lawsuits last year that he won’t have enough money to pay it out – especially if the other ‘250 outstanding lenders’ try to get money if he files for bankruptcy.
Grubbs has not been charged with any crime
He told IndyStar, “He is very well known within the pickleball community. He is the same with everyone. He’s happy to see you, and he can’t wait to tell you about things.’
As Grubbs kept coming to Ponder with new business ideas asking for more money, he kept giving it to him. He reflected, “I thought, ‘Wow, I have $65,000 with this guy,’ and I trust him because he’s Rodney.
“But then again, I don’t really know much about him.”
Grubbs failed to get Ponder his first loan back on time — and weeks later saw a social media post blasting the pickleball fanatic for robbing them of their investments.
He said: ‘I went straight from suspicious to pissed off.
‘Losing that has no consequences for me. I won’t notice it’s gone, but he has people’s savings. Someone said to me, “You’re a fool.” No, I’m not crazy. I trusted a friend. I trusted someone I like, so it’s not my fault. That’s up to him.’
Teri Siewert (pictured), an investor living in Florida, said: ‘He traveled around using his good reputation, as well as the reputations of others he surrounded himself with, to take advantage of good people’
Oklahoma-based pickleball referee Ron Ponder (pictured) invested $65,000 in Grubb’s pickleball venture
Five other investors who sent the so-called “trustworthy” pickleball enthusiast a total of $300,000 said they were pulled out of their retirement funds with the promise of getting their investments back.
According to his investment pitch, Grubbs guaranteed a monthly interest rate of 12 percent, as well as a lump sum repayment after 18 months for all his investors.
Teri and Scott Siewert, who had previously played against Grubbs, gave him a $25,000 investment.
Teri said, “He said he had six $25,000 investment spaces that would allow him to purchase $150,000 worth of clothing so he could meet the needs of this large contract.”
Despite begging him for their money back year after year, the Siewerts were left with nothing – even after angry legal letters were sent to Grubbs.
They were forced to post about their ordeal online. At that point, more than two dozen others came forward and said they had experienced similar things with Grubbs.
Suddenly, Teri said they had been paid $56,000 “to keep us quiet and go away.”
Rick Griffith, another $25,000 investor from North Carolina, also told IndyStar, “Most of us thought we were alone.
“You know, we took this last spot, or replaced someone. There are a lot of people there.’
Grubbs has not been charged with any crime.